Deck 23: Delivery Models and Regulatory Issues

Question 1

Which of the following does not constitute advice about securities:

A) Advice about the advantage of investing in coins.
B) Advice about mortgage options.
C) Advice about securities market trends.
D) Providing a list of specific securities.

Answer 1

B

Question 2

Which of the following Acts created the U.S. Security and Exchange Commission?

A) Financial Services Modernization Act of 1999.
B) Investment Advisers Act of 1940.
C) Investment Company Act of 1940.
D) Securities Exchange Act of 1934.

Answer 2

D

Question 3

An investment adviser has a duty to make _____ based on a _____ inquiry into a client's investment objectives, financial situation and other factors.

A) Manage assets / reasonable.
B) Manage assets / suitable.
C) Recommendations / reasonable.
D) Recommendations / suitable.

Answer 3

C

Question 4

Which of the following licenses permits holders to sell virtually any type of individual security?

A) Series 6.
B) Series 7.
C) Series 63.
D) Series 65.

Question 5

An individual who works for broker-dealer is referred to as a _____ and is compensated with _____.

A) Investment adviser representative / commissions.
B) Investment adviser representative / fees.
C) Registered representative / commissions.
D) Registered representative / fees.

Question 6

An RIA's client records must be maintained for a period of not less than _____ years from the end of the fiscal year of the last recorded entry.

A) Two.
B) Five.
C) Seven.
D) Ten.

Question 7

The Gramm-Leach-Bliley Financial Services Reform Act is also known as:

A) Consolidated Omnibus Securities Act of 2001.
B) Financial Services Modernization Act of 1999.
C) Regulatory Investment Reporting Act of 1927.
D) Securities Act of 1933.

Question 8

Which of the following is not a state goal in regulating insurance?

A) To assure the availability of coverage for citizens of the state.
B) To maintain and promote competition.
C) To monitor the solvency of insurers.
D) To protect the insurer.